Why Samsara Stock Is Soaring Today
Samsara (NYSE: IOT) stock is making big gains Friday. The robotics specialist's share price was up 13.8% as of 11 a.m. ET, according to data from S&P Global Market Intelligence.
After the market closed yesterday, Samsara published results for the second quarter of its 2025 fiscal year (which ended Aug. 3). The company posted better-than-expected sales and earnings in the period, and it also issued encouraging forward guidance.
Samsara sails past Wall Street's Q2 targets
Samsara posted non-GAAP (adjusted) earnings per share of $0.05 on sales of $300.2 million in fiscal Q2. The results came in significantly ahead of the average Wall Street analyst target, which called for adjusted earnings of $0.01 per share on revenue of $289.54 million.
The company's revenue increased 36.9% year over year in the quarter, and profitability improved substantially over the $0.01 per share in adjusted earnings the business posted last year. The business's adjusted gross margin improved to 77% from 75% in the prior-year quarter, and its adjusted operating margin swung from -3% to 6%.
What's next for Samsara?
For the third quarter, Samsara is guiding for sales to come in between $309 million and $311 million. The guidance range came in better than the average Wall Street estimate's call for sales of $308.83 million in the period. If the company were to hit the midpoint of its guidance range, it would mean delivering sales growth of roughly 30.5% year over year. Adjusted earnings per share are projected to come in between $0.03 and $0.04, beating the average analyst estimate's call for adjusted earnings of $0.03.
For the full-year period, Samsara expects sales between $1.224 billion and $1.228 billion -- beating the average Wall Street estimate's target for sales of $1.21 billion. The company also guided for annual adjusted earnings per share between $0.16 and $0.18, coming in far ahead of the average analyst estimate's call for per-share earnings of $0.13.
Samsara's strong Q2 results and forward guidance are helping to quiet concerns that the business would lose sales momentum and struggle to deliver significant profits. Between strong revenue growth, improving gross margins, and encouraging operating-expenses trends, the robotics specialist served up a lot of positive data with the report.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends Samsara. The Motley Fool has a disclosure policy.
Why Samsara Stock Is Soaring Today was originally published by The Motley Fool